Labor will look at changing tax laws to make it easier for indigenous communities to invest in job-creating businesses, adopting a model outlined by the Minerals Council of Australia and indigenous academic
Marcia Langton
.

The ICDC would allow indigenous corporations to run profit-making ventures in the interests of creating jobs without forfeiting their tax-free status. Indigenous corporations can now only undertake community development and charity work.

The Minerals Council welcomed the announcement, which could cover land rights payments worth hundreds of millions a year. “Unlike models under current tax legislation, the ICDC will have the capacity to provide incentives for indigenous peoples to not only fund community development activities to alleviate social disadvantage but also economic development activities enabling individuals and families to participate in the mainstream economy," said
Melanie Stutsel
, the council’s director for health, safety, environment and community policy.

The council said the model would also make it easier to offer immediate cash payments to some native title holders while also locking other funds away for long-term development.

On Friday Mr Abbott said he backed a constitutional amendment recognising indigenous people and he pledged to shift the indigenous affairs portfolio to the prime minister’s office. He also distanced himself from the former Howard government’s “relaxed and comfortable approach" to indigenous affairs. Mr Abbott said he would look at other ways to promote economic development and fining parents who did not send their children to school.

The Gillard government has welcomed his bipartisan support for constitutional recognition but has slammed the opposition which, on Monday, was poised to vote against an amendment to the Tax Act making it clear that land rights payments by mining companies to native title holders were tax-free. The Tax Office has warned it could start levying tax on the payments.

Attorney-General
Mark Dreyfus
said the rejection of the measure contradicted Mr Abbott’s pledge for a new approach.

Related Quotes

Company Profile

Warren Mundine
, former ALP president and now head of Generation One, a group that promotes indigenous employment, said it was good that both parties had indigenous issues front and centre and were promoting jobs rather than offering welfare.